Medicare Levy Surcharge Calculator 2025
Find out if you owe the Medicare levy surcharge (MLS) and how much private hospital cover could save you in 2024–25.
Medicare Levy Surcharge
$0
MLS Rate
0%
Standard Medicare Levy (2%)
$0
Total Medicare Impost
$0
Effective Total Rate
0%
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Medicare Levy Surcharge Rates 2024–25
The MLS is an additional tax charged on top of the standard 2% Medicare levy. It only applies if you earn above the income threshold and do not hold eligible private hospital cover.
| Taxable Income (Singles) | MLS Rate | Total Medicare Rate |
|---|---|---|
| $0 – $93,000 | 0% | 2% only |
| $93,001 – $108,000 | 1% | 3% |
| $108,001 – $144,000 | 1.25% | 3.25% |
| $144,001+ | 1.5% | 3.5% |
Is Private Health Insurance Worth It to Avoid the MLS?
A common question is whether the cost of private health insurance is less than the MLS itself. For someone earning $93,001 (the MLS threshold), the surcharge would be $930 per year. Basic private hospital cover can often be obtained for a similar or lower annual cost — especially with the government's private health insurance rebate. Use both calculators to make an informed comparison.
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Frequently Asked Questions
What is the Medicare levy surcharge?
The Medicare levy surcharge (MLS) is an additional tax of 1% to 1.5% levied on higher-income Australian taxpayers who do not have private hospital cover. It is entirely separate from the standard 2% Medicare levy that most Australians pay.
What income triggers the Medicare levy surcharge?
For singles in 2024–25, the MLS applies once taxable income exceeds $93,000 and you do not hold eligible private hospital cover. The rate steps up at $108,001 (1.25%) and $144,001 (1.5%).
Does private health insurance remove the Medicare levy surcharge?
Yes. Holding an eligible private hospital cover policy for the full financial year exempts you from the MLS entirely. Extras-only (ancillary) cover does not count — you must have hospital cover. The policy excess must not exceed $750 for singles or $1,500 for families.
Does the MLS apply to the whole year if I get cover partway through?
The MLS is calculated on a pro-rata basis for the days in the financial year you did not hold eligible cover. So if you took out cover on 1 January, you would owe the surcharge for approximately the first half of the financial year only.
Is the MLS threshold different for families?
Yes. For families, the MLS threshold for 2024–25 is $186,000 combined income (with a $1,500 increase per dependent child). If at least one adult family member holds eligible private hospital cover, the family is generally exempt from the MLS.
How do I report the MLS on my tax return?
You report your private health insurance details (including your insurer, membership number, and days of cover) in your annual tax return. The ATO uses this information to calculate whether the MLS applies and at what rate.
Disclaimer: This calculator uses 2024–25 MLS income thresholds for singles. Family thresholds differ. Results are estimates only and do not constitute financial or tax advice. Consult a registered tax agent for personalised advice.
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